The second Private Equity Value Report from Real Deals, developed in association with BDO, highlighted 12 qualifying businesses in Scotland. Ten of which have ranked in the top 245 private equity-backed companies across the UK.

Nationally, qualifying PE portfolio companies achieved an average EBITDA growth of 50.8% while average revenues grew by 21.7% over the same period.

The top 10 in Scotland showcased a range of sectors from technology to consumer markets and business services, and the most featured investor was BGF.

Accountancy and business advisory firm BDO commissioned the research to understand the impact that private equity investment is having on the growth of the UK economy. The data was drawn from the most recent three years of accounts filed with Companies House.

BDO Deal Advisory partner, Craig Martin, said: “Scotland is home to some impressive private equity-backed businesses that are making a real impact. These companies are not only driving growth but have also shown remarkable resilience during challenging times. Their ability to adapt and thrive through periods of uncertainty highlights their strength and potential in the market.

“For businesses in Scotland, management teams often look towards minority investors as a route to scalable, durable value creation. Our data shows that 60% of deals in the region were minority investments, far higher than the UK average. This shows businesses are primarily seeking growth capital to scale up and deliver against growth plans, which often includes entering new markets or international expansion, while maintaining operational control.

“This means a partnership approach to value creation is key. This partnership ethos extends to Scotland’s wider deal-making community. As a business community, we have the local expertise, access to funding and entrepreneurial ambition required to drive significant economic growth.”

BGF-backed Strathberry tops the list of the top 10 in Scotland. The Edinburgh-headquartered premium accessories brand achieved standout EBITDA growth which contributed significantly to Scotland’s overall performance. 
 
Founded in 2013 by husband and wife Guy and Leeanne Hundleby, Strathberry secured an £8million investment via a minority deal with BGF in January 2022. The deal allowed the founders to retain control of the strategy for their company, while also benefiting from the capital and experience of an institutional investor. 
 
Strathberry managing director Martin Byrne, added: “Once the team realised the overall proposition – the product, the quality, the brand – was gaining significant traction, it was a case of seeing how we could speed things up. Developing new product categories, e-commerce, digital capabilities, web platforms and international growth all require some level of investment. It made sense at that point to use growth capital.  
 
“The structure an external board brings is important – whether its minority or majority. It brings formality and allows big decisions to be discussed and prepared for in a more structured way. It brings the governance that a small, fast-growing entrepreneur business might not have had in place.”
 
The fastest growing ten mid-market businesses in Scotland saw average EBITDA* growth of 34% and included:

• Strathberry
• Total Vehicle Solutions
• Ross-Shire Engineering
• Subsea Technology and Rentals
• Coretrax Technology
• Axis Well Technology
• The Light Cinemas
• Entier
• Commsworld
• Moulded Foams

*Strathberry’s EBITDA growth was so exceptional, it has not been included in the Scotland average